Mortgage market update for April 2018
MACRO NEWS AND DRIVERS
Property supply in UK up over 47% compared with March 2017 - New property listings in major towns in the UK increased by 1.1% in March month on month with Chichester seeing the largest rise with 47.1% more properties coming onto the market, new research shows.
Asking prices hit new record high: Rightmove - Prices of new property coming onto the market rose by a modest 0.4% in April, but enough to push the national average to a new record of £305,732, according to new Rightmove data.
Rate of annual house price growth slowed for 10th successive month - The rate of annual house price growth slowed for the tenth successive month in March to 0.7%, compared to 5.1% a year ago, the Your Move House Price Index for England and Wales found.
Mortgage approvals on the rise as low savers seek opportunities - There were 66,614 mortgages approved in the UK in March 2018, according to the latest e.surv Mortgage Monitor. The seasonally adjusted figure is up 4.2 per cent compared to February but is down 1.3 per cent on March last year.
Robo changes could take business off traditional mortgage brokers, FCA says - The FCA says it expects technology changes to cause lenders to rely less on traditional mortgage brokers in the future. The regulator makes the prediction in its ‘sector views’ document, published alongside its 2018/19 business plan today.
REGULATION AND LEGISLATION
Over half of buy-to-let landlords sell off properties in face of Government crackdown – One year on from the Government’s big shake-up of buy-to-let investing, new research from Property Partner reveals how landlords have responded. 54% of buy-to-let landlords responded that they are selling all or some of their buy-to-let properties as a result of the Government’s changes.
Government eyes mortgage broker referral fee ban - Estate agents will need to be more transparent over referral fees they receive from conveyancers or mortgage brokers, the government has said, as it considers banning the payments altogether.
BoE warns lenders end of TFS a ‘systemic risk’ - The Bank of England has quietly warned mortgage lenders that the end of the Term Funding Scheme is a possible “systemic risk” to the country’s financial system.
PRODUCT DEVELOPMENTS AND INNOVATION
L&G launches mortgage aimed at older borrowers - Legal & General Home Finance has launched a new mortgage product to help older borrowers. The Optional Payment Lifetime Mortgage aims to appeal to homeowners trapped between traditional lifetime mortgage and residential mortgages.
Bank of Ireland and Post Office roll out new mortgages - Bank of Ireland UK and Post Office are rolling out two new mortgage products to help first-time buyers and older borrowers. The bank is launching two new loans following customer research, which found top priorities were helping children get on to the property ladder and later life borrowing.
Virgin introduces new build mortgages at 90% LTV - Virgin Money has introduced a new range of fixed rate residential products for new build properties. The loans are available up to 90 per cent LTV and come at two, three and five year fixed rate terms.
Barclays launches its first green mortgage - Lender says buyers who opt for more energy efficient homes will be able to access cheaper mortgage rate. Barclays has announced plans to launch a green mortgage where buyers of new-build energy efficient homes can access lower interest rates.
Leeds targets first-time buyers with 95% mortgage - Leeds Building Society has introduced a 95 per cent loan-to-value (LTV) mortgage, aimed at first-time buyers.
Homeowners ‘unprepared’ for predicted interest rate hikes - Nearly half of Brits were not aware of potential interest rate hikes and may be unprepared for the impact it will have on their finances. That’s according to CYBG’s digital banking service B, which found 47% of Britons were unaware of a possible increase in the Bank of England base rate and 57% did not understand how the rise would affect their financial situation.
Interest rate rise: lock into one of these low rates while they last - The Bank of England stopped short of raising interest rates today, but it hinted that it might announce another increase in the spring. The Bank's monetary policy committee said "monetary policy would need to be tightened earlier and by a somewhat greater extent" than previously thought.
Record number of landlords remortgaging for home improvements - The number of landlords remortgaging to release money for home improvements has reached a record high, Countrywide’s Monthly Lettings Index found. In the last 12 months, out of the 171,421 landlords who remortgaged their buy-to-let property, 9,523 did so to take money out to spend on their investment.
First-time buyers seeing off Brexit - Before the EU referendum, there was a huge amount of speculation about what affect Brexit would have on the housing market. I predicted at the time that if we were to vote to leave the EU, there would be an initial period of uncertainty and then, once Article 50 was triggered, things would actually start to calm…